Which of the Following Is NOT an Assumption of the Capital

question 16

Multiple Choice

Which of the following is NOT an assumption of the Capital Market Theory?

• A) All investors are Markowitz efficient investors.
• B) All investors have homogeneous expectations.
• C) There are no taxes or transaction costs in buying or selling assets.
• D) All investments are indivisible, so it is impossible to buy or sell fractional shares.
• E) All investors have the same one period time horizon.

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